Horrible News For Goldbugs - Paulson Is Bullish On Gold Again; Next - Roubini?

Tyler Durden's picture

We wish we had good news, but we are not going to lie: This is the worst possible news for any gold bull out there.

From Bloomberg:

Gold traders are getting more bullish after billionaire hedge-fund manager John Paulson told investors it’s time to buy the metal as protection against inflation caused by government spending.


“By the time inflation becomes evident, gold will probably have moved, which implies that now is the time to build a position in gold,” New-York based Paulson said in a letter to investors obtained by Bloomberg. Armel Leslie, a spokesman for Paulson, declined to comment.


The 56-year-old manager’s SPDR Gold Trust holdings fell 15 percent in the fourth quarter as his $23 billion hedge fund company had its worst-ever year. His Advantage Plus Fund lost 51 percent in 2011, and the firm said in a third-quarter letter that financial services companies were the “primary drag.” Paulson became a billionaire in 2007 by betting against the U.S. subprime mortgage market. Gold rose 10 percent last year in New York trading, an 11th consecutive annual gain.

And so the Paulson overhang is back. Couldn't Paulson just go ahead and buy Bank of America or some other worthless biohazard again?All that remains is for Roubini to say he prefers gold over spam (and always has, he was merely "misunderstood") and the crash will be imminent.

Or perhaps we will learn following the next $1000 up move in gold that Gartman will have been long gold in Vietnamese Dong.

Well, at least cheap entry points will be available.

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css1971's picture

Just set my stops.

antidisestablishmentarianismishness's picture

I'm pretty sure the flock will be able to put a positive spin on this.

tekhneek's picture

I like the part where they show you the 1 hour chart and scream bubble after the fixing.

fonzannoon's picture

Look how complacent this market is. Greece..who gives a shit. Oil....who gives a shit....

I thought Paulson only sold his GLD so he could buy physical. I guess that is not true?

StychoKiller's picture

Someone got hungry for Au-crunchies! :>D

ekm's picture

Seeing Paulson's failures, whoever behaves as if he or she knows what they are doing, including some ass braggers on this blogg, should be ashamed of themselves.

Suggestion: Go for a colonoscopy.

i_fly_me's picture

This is GREAT news!  My acquisition rate is headed up.

kindape's picture

i dont think he ever stopped being bulllish. he just was thinking 2 steps ahead and market was at 1 step ahead and he had margin calls

Bastiat009's picture

Does that mean that everything I have been reading here was wrong and the only reason why I should buy gold was that Paulson was selling his? I thought that gold was good for the exact reason explained by Paulson today. 

spankthebernank's picture

Tongue and cheek my man. When asset prices roll over gold will go with it, for a time anyway. Maybe he's calling the top in the equity market?

Scribbles's picture

CRAP! I'm selling it all for Apple stock.

GernB's picture

Only the best investors waited for it to get over 500 before buying because that's like a milestone that proves it's going up.

Black Forest's picture

Every dog has its day.

Strelok's picture

This might be bad news for gold, in the short term anyway.  When everybody is becomes bullish on gold, or anything else, it's probably time to step back and reasses your next moves. 

Either way, I'm long silver since I bought all of mine at $12-15/oz back in the '07-'08 era.  I'm too poor for gold. 

The Swedish Chef's picture

I wish I bought more back when... But I guess we can expect a correction now, can´t we?

SheepDog-One's picture

Sure! Expect a correction, in anything but stocks from here on out.

resurger's picture

Is it ok to say

"Fuck Gold & Silver"


blu's picture

Not around here. You'll have down-votes before you can say "holy phizzical Batman!"

resurger's picture

just for this post Blu :)

AgShaman's picture

Yes....but it's a bit like wearing and eye-patch on the public rail system...

You may wake up in a road-side ditch.

Don't wake up in a road-side ditch....keep some gold and silver in your portfolio

francis_sawyer's picture

don't have a grandchild with a dog collar...

Sunshine n Lollipops's picture

Q: Is it ok to say "Fuck Gold & Silver"

A: As long as you follow proper Fight Club etiquette and say "Fuck Gold & Silver," bitchez.



AgShaman's picture

Gold induced Tourette's Syndrome?

blu's picture

Well then I am off to the sushi bar for a ceremonial dram of sake before committing ritual sepuku in the center of the nearest intersection.

Just kidding. I'm going on a bike ride.

donsluck's picture

Go ahead, you have 0.0 liability.

youngman's picture

He will buy his gold...but his investments in Greeceor whatever  will fall flat...so he will have to sell again to cover his loses

AgShaman's picture

"Gold is a bubble....and the bull market in gold is over"  -Larry Kudlow

francis_sawyer's picture

He never really did quite understand the true meaning of a "GOLD-i-locks" economy, did he?

_ConanTheLibertarian_'s picture

Hey, Paulson merely got a brainwave. Every idiot has his good moments.

WmMcK's picture

Even a blind squirrel catches a nut sometimes.

Au Shucks's picture

only 'cause they're easier for the cats to catch

Motley Fool's picture

Correction ahead or perhaps demise of the paper market. Things do seem to be progressing nicely.

Eisenhorn's picture

This COULD be the one time he is right.

After all, it means even Paulson is now giving up on the Ponzi.  And my guess is he knows a person or two with some insight into how close we might be.....

Gunther's picture

I will get scared when he buys real bullion and takes posession of the metal.

tobinajwels's picture

How do we know that he has not bought physical?

Gunther's picture

"The 56-year-old manager’s SPDR Gold Trust holdings..."
That does not sound like bullon to me.

Comay Mierda's picture

gold has had a nice rally but its do for a retracement.  let it come down to $1600-$1650 range and buy hand over fist

saulysw's picture

You may be right, or wrong - time will tell. By the way, the word is "due", not "do".

DosZap's picture

John NADLER say's Au is likely heading abck down to 1250.00 1400.00 range.

So, We stay in a holding pattern awaiting the EU, if it falls apart, he may be correct.................on the fiat price.

Good luck buying any at that price.

agNau's picture

One component of double Doo.

*Spelling Police & DHS approved.

SunnyDD's picture
Hehe, That is it!

I.m long on food now.


HiHoAg's picture

....and bullets.

They always forget the bullets.

Dead Canary's picture

Please Tyler, the word "Goldbug" is derogatory. You should know better.

How about..... Gold Stallions!  Yea, that's better.